Sam Johnson Pushes Employee Tuition Assistance

Press Release

Today U.S. Congressman Sam Johnson (3rd Dist.-Texas) announced new legislation to empower employees with employer-provided education benefits, the Employee Educational Assistance Act of 2010, H.R. 5600.

"Employees are asked to do more for their jobs. While companies can't always pay people a higher salary, they can offer better benefits. It's exciting to know that companies want to invest in their employees with tuition assistance. It's a win-win situation. For America to remain competitive with India and China, investing in our future workforce is a must," said Johnson.

Currently workers may access up to $5,250 in tax-free educational assistance from their employers for various expenses, like tuition, fees, and books. Employers do not have to provide this benefit. If they do, then they must make it available to all workers. Created in 1978, this tax benefit expires at the end of the year; Johnson's bill will permanently extend the benefit.

According to the National Association of Independent Colleges and Universities (NAICU), almost one in five individuals using this education expense benefit is pursuing a degree in the sciences, technology, engineering, and mathematics, the so called "STEM" degrees. Approximately 913,100 students received employer-provided benefits, compared to 431,500 in 1992 -- showing a promising 112% increase. Thirty-six percent of these recipients are pursuing a master's degree, as compared to 21% in 1992.

The military provides the largest amount ($2,547) of average assistance to undergraduates. Colleges and universities offer the largest average assistance ($3,277) to graduate students. During the 2007 -- 2008 school year, those earning $42,711 represent the average person accepting the employer-provided assistance.

The average employer-provided education benefits received was $2,700, with graduate students accepting more ($3,701) than undergraduate students ($1,849). Of the benefits recipients, a quarter of all undergraduate and more than half of graduate beneficiaries received more than $2,500.

Johnson introduced the legislation with Congressman Earl Pomeroy (At Large-N.D.)

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